Selecting an ERP or Enterprise Software for your organization can be daunting. Determining which application will best fit the needs of the business also brings deployment model questions to the table. How do you evaluate and select the most appropriate system from the vast range available? SaaS vs Hosted is a key decision that needs to be made in a product’s lifecycle. Before getting into the details, let’s discuss the difference between the two deployment models.
What is SaaS?
‘Software as a service’ is a complete, proprietary solution including all the infrastructure, software, and components. SaaS is a software delivery method that permits data access from any device with an internet connection and a web browser. Users can create an account, purchase a subscription, and never worry about backend infrastructure or application deployment. In this web-based model, software vendors host and maintain the servers, databases, and code that makes up an application.
Benefits of SaaS deployment model:
- Faster ERP implementation
- Cost efficient initially but can get costly down the road
- Software patches and updates made by the provider
- Less or no IT cost
What is Hosted Solution?
Hosted means a customer purchases and owns software; each customer is treated separately, with individual software instances, databases and servers. You have the software installed at a data centre or hosting centre where physical or virtualized servers you own, lease, or finance are set up. The solution is, after that, implemented as it would be on-premise in the office.
Benefits of Hosted deployment model:
- Highly customizable
- Costly setup and implementation but can be more affordable over time
- Data is more secure in your data centre with consistent backups
- More control and scalability
Deciding Between SaaS or Hosted ERP?
Every business has unique needs, so choosing to subscribe to cloud-based solutions SaaS vs privately hosting your solutions depends on the organization. The key is to decide what you most value for your business and existing business model. Do you want more control, even though that will require more resources, risk, and maintenance? Or are you willing to relinquish some control to invest in other areas? Do you have extreme customization needs that require heavy development work? These are questions only you can answer.
Hosted ERP may be the best option for large organizations and those with highly unusual business models or strict security requirements. It offers them greater control over the software, and they will likely have the IT staff and financial resources to take care of patches, upgrades, and other system improvements. Because data is backed up regularly, hosted software is secure.
SaaS ERP is a great fit for companies that do not require much software customization and are happy with what comes out of the box. This is especially true for those seeking a fast implementation, lower initial costs, and seamless scalability and that want to avoid the time and expense of installing and maintaining the software themselves. Because all your hosting and maintenance is included, using a SaaS solution can give you a lower total cost of ownership and make it easier to calculate your operating costs with fewer surprises.
Which ERP Is Right for You?
SaaS ERPs and Hosted ERPs are both viable options, and the ERP you choose will depend on your business’s needs and requirements. Whichever ERP you select – or if you need help deciding – BHC Group ERP consultants can help. We focus on listening to your needs, helping you assess your business, and providing strategic guidance for long-term value.